Don’t Confuse the Two: Mortgagor vs. Mortgagee Made Simple
Getting a mortgage is a major financial step, whether you’re buying your first home or refinancing an existing one. Throughout this process, you’ll encounter several legal terms Mortgagor vs. Mortgagee being two of the most important. Though they sound similar, these terms refer to completely different roles in a mortgage agreement. Understanding the distinction between mortgagor and mortgagee helps you make smarter financial decisions, avoid legal confusion, and better navigate the home loan process. What Is a Mortgagor? In any mortgage agreement, the mortgagor is the borrower the person or entity who applies for and receives the loan. Typically, the mortgagor is the homebuyer or current homeowner who wants to purchase or refinance real estate using funds from a lender. Key Responsibilities of the Mortgagor: Repayment: The mortgagor must repay the loan amount plus interest in accordance with the loan terms. Security Interest: They pledge the property as c...